Hoteliers report positive outlook for the next year
ON the back of a strong summer season, hotels and guesthouses in Mayo have reported an upturn in business during the first nine months of 2015, according to the latest quarterly barometer from the Irish Hotels Federation (IHF).
With overseas visitors to Ireland up 12% year to date, local hoteliers are reporting an increase in business from key markets such as Britain, North America, France and Germany. The industry survey shows that 90% of Irish hoteliers are now optimistic about the trading conditions for their business over the next 12 months.
Commenting on the findings, Michael Lennon, chair of the Mayo branch of the IHF, states that confidence among hoteliers is steadily improving as the recovery in tourism strengthens. This is supported by a number of pro-tourism measures by the government, such as the 9% tourism VAT rate, which continues to have a positive impact on the sector. As a result of the measure, 64% of hotels and guesthouses have increased staffing levels over the last year while 55% plan to take on further staff during the next 12 months.
Mr. Lennon stated: “Irish tourism has performed strongly since the start of the year and throughout the summer season, with overseas visitors now on track to reach over 7.8 million by year end - a level not seen since 2007. The improved outlook for future trading conditions is providing a significant boost to tourism businesses in Mayo, including hotels and guesthouses.”
He added that Mayo’s tourism and hospitality sector continues to act as a strong engine for economic growth and job creation, supporting 5,200 jobs and contributing some €175 million to the local economy annually.
In addition to growth in overseas visitors, he said that the sector is benefitting from a stronger domestic economy, with homegrown tourism starting to recover - although from a low base following years of subdued consumer confidence.
Some 77% of premises are reporting higher levels of business from the island of Ireland as growing numbers take holidays and short breaks at home and spend more money on leisure activities. This is hugely important for the sector given demand from the island of Ireland accounts for the majority of all hotel bednights.
Mr. Lennon said: “Further recovery in domestic tourism will be essential for the many local tourism businesses in Mayo that rely heavily on the home market. There is also a need to develop fully the significant opportunities that exist for growth in areas such as festivals, outdoor activities, and conferences and corporate events.”
The improved outlook for the industry means that hotel and guesthouse owners are now in a stronger position to invest in their businesses. The survey results show that 95% of hoteliers are planning to invest in refurbishment and product development over the next 12 months, while 81% are planning to increase their investment in marketing.
Meanwhile, one of Mayo's best known hotels - Ashford Castle in Cong - has taken part in Tourism Ireland’s ‘Jump into Ireland’ sales blitz events in Minneapolis, Denver and Dallas.
Alison Metcalfe, Tourism Ireland’s head of North America, said: “The United States is one of the most important markets for tourism to the island of Ireland and 2014 was a record year for American visitors to Ireland, when we welcomed more than one million US visitors, spending over US$1 billion. And we have seen really good growth again this year, with the most recent CSO figures showing an increase of 14% in North American visitors for January to August. Tourism Ireland is determined to ensure that tourism growth continues.